Month: March 2018

Hard money loans are used for short-term projects, usually ranging from as little as 30 days to 5 years. But these loans also come with higher interest rates. But if you need to get extra finances quickly, this type of funding is the right choice for you.

Fast approvals are usually quite easy when it comes to hard money loans. On top of quick approvals, these loans also come with high flexibility and less documentation is required for approval. Usually they are used as a last resort when unable to get a mortgage, but it can be well worth it.

If you are looking to finance a real estate investment, this type of funding is very beneficial in its own ways. The application process is much shorter compared to other loans. Financial history of course does play a role, but other factors come into play as well. Many lenders aren’t concerned with the present value. Their main concern is to see that in a short time, they will be able to make their money back on the investment, including interest.

Since lenders are looking more at the final project, making plans for the property plays a big part and can help you get hard money loans even faster. Most of the time, funding is provided in just a couple of weeks. But if need be, you sometimes can get the funds as little as just a few days, all depending on the lender and certain circumstances.

The first thing to do to obtain a loan quickly is to gather all of the important documentation.

Gathering all of the important documentation and information needed for lenders is one of the most basic factors for a speedy process. Things that lenders are looking for include: what kind of property you are looking to invest in (residential, commercial, industrial or land), the estimated value of the property, the requested loan amount and how the loan with be paid back (this includes the terms of loan, the length and monthly payments).

Not only is the process of getting funds quick, so is the application.

Unlike other loans, hard money loans come with much easier applications. In fact, the application is only 5 pages long. The entire process will even go quicker if you are able to present all of the information that the lender needs sooner rather than later. This is why organization of all of your documents and plans come in handy.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Many are optimistic for 2018 to be a great year when it comes to commercial loans, but others are also preparing for some bad financial scenarios to hit this year.

The multifamily market on the west coast could be a cause for some concern. Rental rates have increased, causing the market to be unsustainable. Also, there is stiff competition among lenders, which leads to many dealing with commercial loans to expect an intense 2018 among lenders.

Because of this tough competition, lenders are starting to take more risks by approving higher-risk commercial loans. And if the market takes a turn for the worse, this could put many lenders in a bind. Even though signs do point to a stable 2018, lenders should be prepared in case of a sharp turn.

But the majority in the industry think that momentum from 2017 will carry over into 2018. They also this that not only will there be stability, but that the commercial industry could even see a 5 percent increase.

Many are optimistic for 2018, but some of the issues could be the start of a downfall in the market.

The issues with stiff lender completion and increase in rental rates could be the start of the marketing taking a turn for the worse. It might take a couple of years, but the impact could start in 2018. Especially if the issues continue or if new issues come up.

Some bad signs are also hitting office properties and retail stores.

More people are starting to work from home, which is becoming a bad sign for office properties. With people using their home as their office, there is no need for office spaces, which is leading to a higher vacancy. Retail stores are also starting to lay off more employees, which is another bad sign. That means that they could be on their way to going out of business, leading to the vacancy of even more spaces.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

The end of 2017 wasn’t quite the strongest quarter, but overall 2017 was a really good year for commercial loans. Just recently, Bank Financial Corporation released their impressive numbers from 2017 and many others in the industry shared the same success.

With a 20 percent increase from last year, Bank Financial Corporation recorded a net income of $9 million dollars. There was a decline in the 4th quarter from previous years, but it was mainly due to accelerated payments and also prepayments of leases. On top of that, the reduction of wholesale deposits did cause a decline in total deposits in the 4th quarter, but 2017 still saw an overall increase.

Commercial loansand industrial loans san an increase in $53.5 million dollars in 2017. Also, seeing increases, multi-family residential real estate loans increased by $45.5 million dollars and middle market commercial leases grew by $18.1 million dollars. Bank Financial Corporation wasn’t the only company that saw an increase throughout 2017. Many in the industry also saw just as impressive numbers when it comes to all the different types of loans.

It was a favorable year for Bank Financial Corporation set a new record with commercial related loan balances of $1.22 billion dollars. The total retail and commercial deposits didn’t grow, but it also didn’t decline either, leading to stability throughout the year. Stability isn’t the best scenario, but it is a lot better than seeing a decline. Which is why many in the industry are hoping that the numbers continue to increase or at least be stable as we continue into 2018.

Bank Financial Corporation thanks the positive trends due to a new organization structure.

With such a great year with accelerated growth with commercial loans, Bank Financial Corporation has given credit to the success to new key business plan objectives that they were able to execute for a successful year. The company is hoping to continue to improve and become more efficient throughout the new year. The company was able to organize their plans to successfully deliver the business that their consumers are looking for.

The momentum from 2017 is expected to continue through 2018.

Due to the successful year, Bank Financial Corporation has been able to obtain new customers, acquire new account types and even expand relationships with existing customers. Bank Financial Corporation is the holding company for Bank Financial National Bank, who currently have 19 offices across the United States and offer things like commercial loans.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Your business credit score will play a role in approval for commercial loans. If your business is just starting out, you might not have an impressive credit score, but there are things you can do to boost your credit score to avoid denial.

Credit score is reflection of your financial history and that means you want it to be great because it says a lot about your business’ credibility and stability. It also plays a part in getting approved for extra funding and is a good way to avoid having to pay higher interest rates or higher fees.

There are things you should do to boost your credit score. One of the easiest ways to do this is to always make payments on time to creditors. Making payments early will boost your credit score even more. Those with perfect credit scores are known for having a track record of making payment early. Start doing this sooner rather than later, the longer you do this, the better your score. You want to use your credit cards, this can help increase your credit score, but avoid hitting the maximum limit.

Keep in mind that public records will also play a role in your credit score on top of getting approved for commercial loans.Things filed like judgements, liens and bankruptcies are public record and could have a negative impact on your credit score. That means all of the hard work you have put in boosting your score could go down the drain. You want to avoid having anything financially wrong on your financial record.

Borrow from the right lenders, ones that actually report to credit bureaus.

It is okay to be picky when it comes to choosing the right lender. Commercial loans can boost your credit score but making payments on time, but they need to be reported to the credit bureaus. That is why you should always ask your lender beforehand if they report. Banks usually always report, but it is not a requirement for lenders to do so.

Building a better credit score has its many benefits.

Having a good credit score will help with many things like lower interest rates on commercial loans or credit cards. Plus, you will usually be able to come to better terms with supplies, attract new customers and establish a good reputation with existing customers. Of course, credit scores can be calculated in a variety of ways and can vary, but always try to keep as up to date as you can on your current credit score.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

It can be exciting when it is time to expand your new business, but it can also be stressful when you need to start looking for extra funding for your expansion. Applying for commercial real estate loans can be a grueling process, but in the end, it is well worth it.

Always do plenty of research and compare all of your options. This way, you will be prepared and know what to expect. Working with a lender you can trust is very important because then you will feel comfortable asking all of the questions you need to ask to ensure you understand everything. Commercial real estate loanscan be used for many things like a new location for your business, renovation of your current location or expansion of your current location. Really, you can use it for any of your real estate needs. Especially if you are looking to purchase new property. This can cost a lot, leading to the need of extra financial help.

Find the right lender to work with. They will open with you about the entire process and will discuss the terms and fees that come with borrowing. Reputable and honest lenders will discuss with you what will happen if you decide to pay off the loan early. In this case, you may be responsible for some fees. If you are open and honest with your lender from the beginning, then you will not be hit with any hidden terms or hidden fees.

Interest rates will also vary when it comes to commercial real estate loans.It will depend on many things like your credit history, financial situation and type of business. These loans will usually come with higher interest rates than compared to other types of loans. The interest rates can fluctuate, but the average rate will most likely be between 3.5 percent and 6 percent.

Be prepared to now only pay higher interest rates, but also higher additional fees.

Upfront fees and additional costs aren’t that uncommon for commercial real estate loans.Just like with interest rates, these additional fees are going to be higher with these type of o loans. Some of these fees could include: legal costs, loan application fees, survey fees, property appraisal or even an annual fee.

Higher interest rates and higher fees can be difficult, but working with the right lender will make it worth it in the end.

There are many reasons for why you may need to extra funding. And even though it takes some time, work and a little bit of stress to apply for extra funding, if you work with the right lender and are prepared with what to expect throughout the process, then all of your hard work will pay off.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

If you are looking for a loan for your real estate property, then you need to know what to expect when applying for commercial real estate loans.There are many important components that you should be aware of during the application process.

Commercial real estate loansare not given to individuals, but to corporations, developers and other business entities. The funds can be used for a number of things for their business. It can be used for remodeling, adding more locations. If your business doesn’t have a strong credit history, then some lenders might be looking at the owner’s individual credit scores. To be sure of approval, it is best to have an excellent credit score, usually of around 700. So, make sure to keep that in mind before applying.

Be prepared to pay higher interest rates than those compared to residential loans. On top of higher interest rates will also be extra costs for the fees. These fees can include: legal fees, appraisal, loan application and survey fees. Keep these fees in mind when you ae shopping around for the best deals. You want to take these into consideration along with interest rates and other terms.

Also, be aware that you could face prepayment restrictions. Most of the commercial real estate loans come with certain regulations and terms. These will pop-up if you decide to pay off the whole amount of debt before the payment due date. This could result in having to pay penalty fees. This is actually a very common thing among lenders. It is usually calculated by multiplying the current outstanding balance by a certain penalty amount or interest guarantee. If the balance is paid off early, you may be responsible for paying a fee to the lender.

The terms usually range from 5 years to 20 years, but the amortization period could end up being much longer than the actual term length of the loan. For example, a loan term could only be 7 years, but the amortization could be for 25 years. The length of the loan and amortization could affect the rate of the fees and the interest rate. But remember that most terms are negotiable. Just keep in mind that the longer period of the loan length, the higher interest rate.

Always take into consideration the factor of loan to value ratio.

The loan to value ratio measures the value of the loan compared to the value of the property that the loan is being used for. This is calculated by the lender and the category of the loan does play a role in this. If the loan to value ratio is high, then it is usually common for loans to be approved. Always talk about this with your lender before making any final decisions.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Working with the right hard money lenders is important on so many levels. Many things need to be considered like the location, property type and intended use for the loan. That is why choosing a lender that specializes in hard money is a good idea. Just make sure to ask the right questions to know you are choosing the right one.

A reputable lender will have no issues openly answering any questions that you have. Some questions that are commonly asked include, who decides approval of the loan? Is there any way I can speak directly with that person? Which law firm do you work with to document the information? Don’t be afraid to ask any questions that you may have.

Asking about providing references is also common and it is totally fine to ask for them or to even ask for examples of similar transactions that have financed or approved. Hard money lenders that shows signs of being reluctant to answering these questions or shows any hesitation, could be a red flag and should cause you to dig deeper to find out more information about the lender.

Feel free to ask about how they can work with you if you are unable to qualify for any conventional loans because of things like poor credit. Establishing a trusting relationship with your hard money lenders is going to help you in the long run. You always want to be upfront with your lender and feel comfortable talking about your finances and needs with them. In return, they should always be upfront with you as well.

Always discuss your plans for the future and what you are using the extra funds for.

The first thing to do is decide how you will use the funds and how you want to restructure repayments. Always be thorough with your research. Once you are able to find the right property you want to use your extra funds for, discuss all of these things and what you plan for the future with your lender. They should be involved in the process to help you make the best financial decisions for your plan.

Trusting your hard money lenders is one of the most important factors.

When working closely with anyone on your finances, you want to make sure you trust them completely. Finding a reliable lender will make you feel comfortable asking any questions that you may have and feel comfortable discussing all of your finances. Your lender should be open to answering any questions and should be as helpful as they can throughout the process.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Do you wish you could obtain commercial real estate loans to help grow your business? Level 4 Funding explains how and why they can benefit your business.

When looking for commercial real estate loans for your company’s business — whether you have extra expenses or you want to grow and expand your business, you need to understand that it’s not like trying to obtain a mortgage for a residential home. There are a lot of intricacies and complexities associated with the commercial type, so it’s important to know what you’re getting into.

If you’re in the market to purchase property for your business or a second location, commercial real estate loans are very useful in helping you get to the next step. Having these extra funds can bring your business into a whole new level if you are looking to build, expand, open a new location or whatever your business needs are. When you apply for this type of loan, you need to know there is a long road ahead. Most traditional loans of this sort take some time for the application and approval process. You should be as prepared as possible with your business plan, financial statements or documentation. You should also be up to date with your current credit score and history. Having all this in place will give you a head start when you start drilling down into this process.

You’re also going to want to do some initial research, planning and prep to increase your chances of a successful approval of your loan. For example, did you know that loans are sometime secured by a lien on the property that you are looking to purchase? That equates to the fact that the lender has legal rights to take over ownership of your property if you aren’t able to make the payment or repayment schedule or other terms of the agreement. That’s why it’s important to read the fine print and all the clauses of the lenders’ agreement so you know what you are signing. Have a lawyer take a look at all documentation is a good idea, too, especially one that specializes in commercial real estate loans.

There are some consequences if you are not able to pay the agreed upon financial commitments outlined in the contract.

If you can’t meet the terms of your loan agreement, or if you become in breach of contract for other reasons, you could put your business in a bad position. If payments are not made to your lender, they could foreclose on your property forcing you to close your business.

There are also other costs and fees associated with commercial loans, besides a down payment and monthly payments. Make sure you are aware of all “hidden fees” before moving too far ahead.

The initial down payment required could be about 20 to 30 percent. This can seem like a hefty amount, but it also benefits you because you begin to earn equity instantly. When you apply for this type of loan, make sure you understand the commitment you are making to your lender so you can ensure you are able to cover all costs in addition to monthly repayment schedule.

Dennis DahlbergBroker/RI/CEO/MLO Level 4 Funding LLC Private Hard Money LenderArizona Tel: (623) 582-4444 Texas Tel: (512) 516-1177 Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378 22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027 111 Congress Ave |Austin | Texas | 78701 About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.